I listed on Prosper twice without success. Even though my credit score was excellent, they recommended that I offer a 35% interest rate even tho' I offered 25%. At that rate, it's cheaper to use my credit cards. Please be aware that they also pull a credit report just like a regular loan application. i'M SURE THE SITE IS LEGIT, but it isn't for everyone.

Prosper is a large group of "angel investors". It is actually an auction that people bid on pledging monies from $25.00 on up in order to fund a request. Sometimes the bidding can actually push down your interest rate. It's possible to have 500 people bid $25.00 each in order to raise $12000. Prosper is the medium that unites the lenders and the lendees and arranges the details after the request has been funded. We were looking for funding to expand our retail business. As I mentioned, our request was not successful. Only 22% of our requirements were pledged with funding and Prosper stated that we should probably offer to pay a higher interest rate in order to be successful. With Prosper you state in advance how much interest you are willing to pay. Again, they pull your credit and assign a rating from AA on down. It's an interesting concept and I do know that there are at least two other sites that are similar. I hope this helps. Oh yes, there is no cost to post a request, except the hit on you credt and if you decide to relist after an unsuccessful first try, I believe they pull your credit again.

Thats an interesting approach. I\'ve never heard of that. If you are still looking for financing there may be several people in this forum that can help. Fortis concentrates on equipment, SBA loans, and working capital. As far as your boutique goes how much is your business seeking?

We posted a request for a couple of hundred thousand dollars to expand our retail (PET store looking to expand). You were one of the first to erply. It's really a job to separate all the offers. Cash advances normally offer only only a small percentage over your current credit card sales, so that $15000 in credit card sales will not qualify for a much larger advance. In addition so many companies want funds upfront. The latest seems to be setting up business credit, PAYDEX ratings, buying trade lines, etc. I've been asked for thousands of dollars up front in order to set up business credit and qualify for business loans (NO GUARANTEES) months down the road. We are just wading our way through all that is out there in hopes of not getting scammed.

You are right to keep your hand on your wallet when dealing with anyone who offers to set you up with improved credit or business credit or anything of that nature.

You say you're looking for a couple hundred thousand dollars...for a pet store?

Can you tell us specifically how much you're looking for and what it would be used for?

Is the pet business doing so well that it justifies a $200,000 investment?

As for prosper.com, I think it's a great idea, but I have to think that they are having a hard time finding people to make microloans...everyone is being very cautious these days. The fact that they suggested paying 35% just means that there is problem with supply vs. demand for the money...and you'd have to think long and hard before taking on capital that costs you 35%.

The "PET" store is a little misleading. We are an animal themed collectibles shop in the premier shopping, dining and entertainment complex in Myrtle Beach, SC. We have invested over $150000 in our store. The gross sales in 14 months were over $200000. We are currently maintaining over $125000 in inventory, employing two salespeople and paying the obscene rent that comes with a complex like ours. We are looking to open a second location in another tourist area about 6 hours away. While we have the available funds for tenant improvements and fixturing, we do not have the available funds for merchandising. That is when the $200000 comes into play. That will enable us to merchandise the store and give us a cushion for working capital. They say the first year is the hardest and we are grateful that even in this recent down economy that we are still here.

From a banker's perspective, you have way too much inventory. (Is that $125K what it cost or what it would retail for? How was it financed? Your capital? Debt? Payables?)

You made $200K in sales in 14 months and you have $125K in inventory. It seems like your inventory is not turning fast enough, and an outsider looking in will assume that much of it is not ever going to sell.

Interesting questions!!!! The inventory figure is at retail. As I mentioned, we are an animal themed collectibles shop, so our customer requests are very specific. If someone comes in looking for a Miniature Pinscher and all I have are poodles, I've lost the sale. In comparison, if someone is looking for a black top for an outfit, they may buy dark blue or short sleeves instead of long. I do not have those options. I stock over 160 breeds of dog and cats, in addition to wildlife, sealife, aviary, etc. We are also the largest US retailer of a stone critter line. Because much of our business is tourist driven, we cannot afford not to have stock as we may never see our customer again. We cannot ask them to come back the following week because chances are their vacation is over. We are also stocking up for our web site. Another issue which is very timely. Shipping costs are off the wall and sometimes it pays to increase an order to make better use of shipping fees. As far as payables, we currently have payables of less than $5000. Most of our merchandise was either purchased as part of the gross sales of the store or through an equity line of which payments are completely supported by the revenue of the store. In our first year of business, we have identified the lines that sell the best. Actually 50% of our sales are from 6 companies, but again as a tourist based store, the customer that does vacation here one or twice a year also needs to see new items. Our Christmas season is July & August not December, so our stock reduction is starting now. Hope this answers your inquiries.

OOPS! Forgot to answer a question. As far as profitablity....yes, not very much, but there was a small profit. We have turned over our inventory 1 1/2 X since we opened. A part of our inventory is also merchandise that we had from a previous business. We have some traffic pattern issues here because of the way the complex bridges are set up, but we anticipate with the forthcoming changes, that our business will double.

I dont blame you. Well the SBA is the Small Business Administration. They have a govenerment website. Certainly not a scam. I think most are very familiar with the loans. We dont claim they are the simpliest of loans but I think they rank up their with best. Just goes to show that easier doesnt mean better.

I listed on Prosper twice without success. Even though my credit score was excellent, they recommended that I offer a 35% interest rate even tho' I offered 25%. At that rate, it's cheaper to use my credit cards. Please be aware that they also pull a credit report just like a regular loan application. i'M SURE THE SITE IS LEGIT, but it isn't for everyone.

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